The big money is in 4+ units where you increase the rents and the rent increase automatically increases the Cap Rate and the property's re-sale value.I would like to see more people pushing people to understand the power of multi-units and the very strange thing is that I skim through every real estate book I can get my hands on and every book I ever read is missing the very most important facets of multi-unit investing and every book is full of pure B.S. when it comes to the subjects to the pitfalls of multi-unit investing.

Would I be able buy this property subject-to legally using this method? 

Jeffrey,When you acquire a note the Loan Sale Agreement will outline everything.

I have an opportunity to help my sister who just received a letter that her house will be going to Sherriff's Sale. We are in PA. My question is: Can the sub 2 method still be used when it has gotten that far? I will ...

And then there was the business from posting on bigger pockets (this was back when I would post "projected rents from the subject property can be counted as income at 75% of value" and people would be amazed, lol, I also did a bunch of cash out refis for REI with >4 financed properties, right after the guideline change allowing it flew under the radars of 99% of the competition, giving me and a small minority of others a pseudo-monopoly -- know your guidelines!)

This sounds like a great project.Recommend you pass on this deal, subject to learning more about REI. 

They can tell you alot about the area where your subject property and they can provide CMA reports which will help you figure out whether you should pay for an appraisal.

In a deal like this, you would be looking at a subject 2 to take over his existing mortgage and some payment plan to him for his equity.

Cash out refinance will increase your interest rate and is subject to appraisal value.

Our bank advised that the best way to proceed with this would be by adding the other two members to the title after closing, and we also have a strong operating agreement outlining all the critical details of this deal.